EconPapers    
Economics at your fingertips  
 

The effect of discounting on quality of life valuation using the Time Trade-Off, CHERE Working Paper 2008/3

Richard Norman and Rosalie Viney ()

Working Papers from CHERE, University of Technology, Sydney

Abstract: Cost-utility analysis, combining mortality effects with health-related quality of life effects, has become the preferred method for presenting economic evaluation. It allows comparability between potential investments in different areas of health and healthcare as the outcomes are generic and designed to be applicable in multiple contexts. There are various methods for estimating health-related quality of life scores but one major approach is the use of the Time Trade-Off. Evidence has suggested that scores from this measure are relatively lower than from other measures. We argue that one possible reason for this is that the TTO method artificially deflates valuation scores because it does not take account of time preference. The extent of the deflation depends on the duration of survival offered for the health state in question, the true valuation placed on that state, and the individual?s rate of time preference. This has implications for the use of TTO valuation scores in economic evaluation, particularly when models are populated using health-related quality of life scores from sources using different methods.

Keywords: health related quality of life; time trade off (search for similar items in EconPapers)
JEL-codes: I10 (search for similar items in EconPapers)
Date: 2008-06
New Economics Papers: this item is included in nep-hea
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.chere.uts.edu.au/pdf/wp2008_3.pdf First version, June 2008 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:her:chewps:2008/3

Access Statistics for this paper

More papers in Working Papers from CHERE, University of Technology, Sydney Contact information at EDIRC.
Bibliographic data for series maintained by Liz Chinchen ( this e-mail address is bad, please contact ).

 
Page updated 2023-11-25
Handle: RePEc:her:chewps:2008/3